MP Materials (MP) just delivered a first-quarter report that had investors smiling after the bell on Thursday. The rare earth miner posted revenue of $90.65 million, easily clearing the $76.47 million analysts were looking for. Adjusted earnings came in at three cents per share, versus expectations for breakeven. Not bad for a company that's still scaling up its operations.
Revenue was up 49% compared to the same quarter last year, thanks to higher sales of NdPr oxide and metal. That's the stuff used in magnets for electric vehicles, wind turbines, and other high-tech gear. The company produced 917 metric tons of NdPr oxide in the quarter — a 63% jump year-over-year — and 12,983 metric tons of rare earth concentrate, up 6%. NdPr sales more than doubled, rising 117%.
CEO James Litinsky highlighted the company's progress: "We advanced key growth initiatives, expanding operations at Independence and breaking ground on 10X, with scaled heavy rare earth separation commissioning activities set to begin imminently at Mountain Pass." In plain English, MP is moving ahead with plans to process more rare earths domestically, reducing reliance on China.
The company ended the quarter with a hefty $1.74 billion in cash and short-term investments, giving it plenty of runway to fund those growth projects. Executives will discuss the results in more detail on a conference call at 5 p.m. ET.
Investors liked what they saw. MP shares were up 4.26% in after-hours trading, changing hands at $71.99. The stock has been on a tear this year as demand for rare earths continues to grow and the U.S. pushes for more domestic supply chain security.
